Does a file splitter app require the PC to have internal storage space greater that the file being split even if it's being done on a external storage

[Windows 10]

I have a older device I am customizing,upgrading and programming. Unfortunately it's so is only compatible with FAT23 (4GB file size limit)if information is being added via USB and there is nothing at the moment that can be done to spoof or trick it into thinking a NTFS is fat32,the hardware won't allow it. So I have 2 and only 2 options: 1). Transfer a fille that is 4GBs or bigger through ftp using Internet (dead end due the my PCs internal storage only having 3.5 GBs of available space or 2). Split the file into smaller files and transfer via USB. So I downloaded FileFracture from the Window

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